Debit Card Conundrum: Why the Fee Difference?

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In summary: So if they were adding a fee onto a purchase, refusing to make the purchase would be a reasonable way of protesting.The fees are widespread in the food-service industry. Only 1 or 2 major fast food chains don't charge you for using the ATM.
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Pengwuino
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Ok I am confused. I am sure some of you have noticed this> When you have a debit card and you pay with debit, at many places your charged a $.25-$1.50 charge but there is no charge when you use your debit/atm card as a credit card. Obviously, something seems wrong... Why isn't there a charge if you use it as a credit card and how can you really use it as a credit card when its a debit/atm card and there's mone in your account.
 
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  • #2
Pengwuino said:
Ok I am confused. I am sure some of you have noticed this> When you have a debit card and you pay with debit, at many places your charged a $.25-$1.50 charge but there is no charge when you use your debit/atm card as a credit card. Obviously, something seems wrong... Why isn't there a charge if you use it as a credit card and how can you really use it as a credit card when its a debit/atm card and there's mone in your account.
This is dependent on many things, such as what bank you bank with, what type of account you have, etc. I am only charged a fee if I withdraw cash through a bank other than my own. Since businesses are charged a fee from the bank for processing your charge when you use your card as a credit card, they usually have a minimum purchase amount to ensure they are covering that cost to them. One difference is that the debit will be deducted from your account more quickly then when you use it as a credit card.
 
  • #3
The debit system is managed by a consortium of the banks themselves, while the credit system is managed by an independent company (e.g. Visa, MasterCard). They simply have different rules. Your check-card is registered with both systems, and you can choose which you'd like to use at purchase-time.

- Warren
 
  • #4
I refuse and/or cancel any purchase where they attempt to charge me for the privilege of using my own money.
 
  • #5
I love my credit card. :biggrin:
 
  • #6
DaveC426913 said:
I refuse and/or cancel any purchase where they attempt to charge me for the privilege of using my own money.

Um... you are using bank services to get your money. Therefore, YOU MUST PAY FOR THE SERVICES!

What you just said makes NO sense at all.
 
  • #7
JasonRox said:
Um... you are using bank services to get your money. Therefore, YOU MUST PAY FOR THE SERVICES!

What you just said makes NO sense at all.
Remember Dave, it's not cash, the place has to go to an extra effort to get the money. Most places do not add an additional fee if you are making a purchase, I've only encountered the fees if I want to receive cash without making a purchase.

So if they were adding a fee onto a purchase, refusing to make the purchase would be a reasonable way of protesting.
 
  • #8
The fees are widespread in the food-service industry. Only 1 or 2 major fast food chains don't charge you for using the ATM.

@Dave

Remmember though you are also being given the privilage of having a space to safely keep your money and the infrastructure to have that must be payed for some how so its not 'unfair' to charge you for that.
 

Related to Debit Card Conundrum: Why the Fee Difference?

What is a debit card and how does it work?

A debit card is a plastic card that allows you to make purchases or withdraw money directly from your bank account. When you use a debit card, the amount is immediately deducted from your account, unlike a credit card where you borrow money and pay it back later.

Why do some merchants charge a fee for using a debit card?

Some merchants charge a fee for using a debit card because they have to pay a fee to the bank that processes their card transactions. This fee is called an interchange fee and it is usually a small percentage of the total transaction amount.

What is the difference between a flat fee and a percentage fee for debit card transactions?

A flat fee is a fixed amount that is charged for every debit card transaction, regardless of the amount. A percentage fee is a fee that is calculated based on a percentage of the total transaction amount. For example, a merchant may charge $0.50 for every debit card transaction or 2% of the total transaction amount, whichever is higher.

Why do some merchants charge higher fees for debit card transactions than others?

The amount that merchants are charged for debit card transactions depends on various factors such as the type of business, the volume of transactions, and the type of card used. Some merchants may be charged higher fees because they are considered higher risk businesses or because they accept certain types of debit cards that have higher interchange fees.

Is there anything I can do to avoid paying debit card fees?

Yes, there are ways to avoid paying debit card fees. You can choose to use a bank or credit union that offers free debit card transactions, or you can opt for cash or another form of payment. Some merchants may also offer discounts for using cash instead of a debit card. Additionally, you can check with your bank to see if they offer a debit card with lower fees or if they have partnerships with certain merchants that offer fee-free transactions.

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